DAX futures (March contract is FDXH7, continuation contract is FDXc1)
The pullback correction that I talked about yesterday is now underway as the DAX has fallen back towards the breakout support at 11,895.
This now means that the initial support band 11,795/11,895 is important.
11,795 was the low of the day of the big breakout and a retracement back below would be a disappointment for the bulls.
The daily momentum indicators are just consolidating now as they react to the bear candle from yesterday, but no significant negative signals as yet.
The hourly chart shows the RSI unwinding back towards the low 30s again which has been a level used during similar corrective moves on 6th and 17th Feb.
A decisive move below 30 on hourly RSI would be a concern for the bulls.
If the support starts to build around 11,850/11,895 which is towards the bottom of a recent trend channel, this should therefore prove to be another chance to buy.
- Resistance is now 11,971/12013 and the high at 12,030
- Support is 11,895 and 11,850 with 11,795 now key near term